HOW TO GET YOUR CAR LOAN APPROVED - Yellow Pages

HOW TO GET YOUR CAR LOAN APPROVED EVEN IF YOU HAVE BAD CREDIT

INTRODUCTION

Well, it's all about giving the lender confidence that you are going to pay back the car loan. There's many different ways you can do this and there are 5 main ways that we suggest you can prove to the finance

company that you're a good risk for the car loan.

In finance, there's commonly known a rule of the 5 C's. The 5 C's stand for Capacity, Character, Collateral,

Capital and Conditions. So when looking to prove your credit worthiness to the lender, your application must cover those 5 areas. Now, to someone who is not in to finance, you might not understand at first glance what those 5 C's are so I'm going to break those down for you in this e-book and I'll even give you two ways. It should become clear to you by the end of this e-book how you can formulate your application for a car loan to overcome any concerns that the lender might have

in relation to your prior bad credit.

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TABLE OF CONTENTS

INTRODUCTION.................................................................................................. 2 ABOUT US ..........................................................................................................4

Step 1: CAPACITY ............................................................................................5 Step 2: CHARACTER ........................................................................................5 Step 3: COLLATERAL .......................................................................................6 Step 4: CAPITAL ..............................................................................................6 Step 5: CONDITIONS .......................................................................................7 Bonus 1: BE HONEST.......................................................................................8 Bonus 2: OFFER A GUARANTOR ......................................................................8 SUMMARY .........................................................................................................9 OUR GUARANTEES ........................................................................................... 10 ABOUT THE AUTHOR ....................................................................................... 11

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ABOUT US

Thousands of customers just like you have used Fox Car Loans to get a car loan tailored to suit them. In fact in 2006 when our company began we did it with the sole purpose of bringing the best finance deals to everyday Australians, whether you are a Doctor, a tradesman, self-employed or have bad credit, we have a huge range of loan products to suit everyone. For more information about us, please go to .au

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Step 1: CAPACITY

So capacity means affordability or serviceability - what that really means is your ability to repay the new loan that you're wanting. This step is all about proving to the broker, the bank, the finance company, the private lender whoever it may be looking at lending you money that you can afford this loan.

This is really important from both the broker and lender's perspective because they have a duty to provide responsible lending practices to their clients and to ensure that their clients can afford any loan that they may take. So in this step, what you need to do is to prove beyond a shadow of a doubt that you can afford the loan. So how do you do that? Well, there's a number of ways. Firstly, you will need to provide proof of all of your income so that maybe pay slips, bank statements, centerlink income statements, tax returns or BAS statements. And if you don't have BAS statements, etc, because your business has just started it may be a one page cash flow projection but something to show the lender that you can afford the loan. Part of being able to afford the loan is also not just looking at your income but also looking at your expenses, so it's important that you are open and honest about any debts, loans, or anything that you're paying off. It's very important that the lenders know about those debts so they can factor those in when calculating your affordability for the new loan.

Step 2: CHARACTER

Character is about proving that you have the intent to want to pay the new loan back. So if you have recent bad credit, obviously, on the scale of good and bad there are a few things on the bad side. What we need to do is put something on the good side of your scale. So how do we do that? Well, we get a statement; we get something to prove that you can pay regularly and on time. It might be rental of a fridge, it might be a rental of a property where you're living, it could be a statement on a

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